A drop in investor confidence following exposure of insider trading would be an
example of a residual cost of white collar crime.

Question

Quizplus · Accepted Answer

A residual cost of white collar crime is a secondary or long-term consequence that may not be immediately apparent or quantifiable, such as a loss of trust or confidence in the financial system. If insider trading is exposed, it could lead to a drop in investor confidence, thereby resulting in a residual cost of white collar crime.

A Drop in Investor Confidence Following Exposure of Insider Trading